c. Recall from the discussion of Cash and Cash Equivalents in L Chapter 5 that commercial paper is like an IOU issued by a very creditworthy corporation. Home and Office City's note disclosures concerning commercial paper reveal that "The company has a backup credit facility with a consortium of banks for up to $800 million. The credit facility contains various restrictive covenants, none of which is expected to materially impact the company's liquidity or capital resources." What do you think is meant by this statement? Page 274 d. What other information would you have wanted to know about Home and Office City's "Financing Lease Obligations" when making an assessment of the company's overall liquidity and leverage? e. Regarding the "Installment Notes Payable," what is meant by "interest imputed at rates between 5.2% and 10%%"? f. Why do you suppose that Home and Office City's "Unsecured Bank Loan" was immaterial in relation to the company's total long- term debt? g. Note that the "current installments" due on Home and Office City's long-term debt were immaterial in amount for both years presented. Based on the data presented in this case, explain why this is likely to change over the next five years.Case 7.37 LO 7-7, 9 7-8 Analysis of long-term debt Assume that Home and Office City Inc. provided the following comparative data concerning long-term debt in the notes to its 2023 annual report (amounts in millions): Page 273 December December 31, 2023 31, 2022 314% Convertible Subordinated Notes, due October 1, 2024; converted into shares of common stock of the $1,103 Company at a conversion price of $15.3611 per share in October 2023 612% Senior Notes, due September 15, 2027; interest payable semiannually on March 15 and September 15 500 beginning in 2023 Commercial Paper; weighted average interest rate of 4.8% at January 1, 2022 246 Financing Lease Obligations; payable in varying installments through January 31, 2050 216 180 Installment Notes Payable; interest imputed at rates between 5.2% and 10.0%; payable in varying installments 45 27 through 2041 Unsecured Bank Loan; floating interest rate averaging 6.05% in fiscal 2023 and 5.90% in fiscal 2022; payable in 15 15 August 2025 Variable-Rate Industrial Revenue Bonds; secured by letters of credit or land; interest rates averaging 2.9% during 3 fiscal 2023 and 3.8% during fiscal 2022; payable in varying installments through 2033 Total long-term debt $ 779 $1,580 Less current installments 29 Long-term debt, excluding current installments $ 750 $1,566 Required: a. As indicated, Home and Office City's 314% Convertible Subordinated Notes were converted into shares of common stock in October 2023. How many shares of stock were issued in conversion of these notes? b. Regarding the 641% Senior Notes, Home and Office City Inc. also disclosed that "The Company, at its option, may redeem all or any portion of the Senior Notes by notice to the holder. The Senior Notes are redeemable at a redemption price, plus accrued interest, equal to the greater of (1) 100% of the principal amount of the Senior Notes to be redeemed or (2) the sum of the present values of the remaining scheduled payments of principal and interest on the Senior Notes to maturity." Redeemable fixed-rate notes, such as those described here, are similar to callable term bonds. Thinking of the 612% Senior Notes on this basis, would it have been possible for Home and Office City Inc. to redeem ("call") these notes for an amount 1. Below face value (at a discount)? 2. Above face value (at a premium)? 3. Equal to face value (at par)? What circumstances would have been most likely to prompt Home and Office City to redeem these notes